MGT5STR: Strategic Analysis & Recommendations for Jacob's Creek

This report provides a strategic management analysis of Jacob's Creek, a major Australian wine producer, within the context of the Australian agribusiness sector. It examines international opportunities driven by global demand, population growth, and foreign investment, further exploring suitable international strategies such as establishing market access and fostering favorable international markets. The report discusses appropriate and inappropriate modes of entry into the international market, emphasizing compliance with regulations and avoiding substandard practices. Recommendations are made for the future strategic direction of Jacob's Creek, focusing on government support, technological innovation, and addressing climate stress to ensure the sustainability and growth of the wine production sector in Australia. This assignment solution is available on Desklib, a platform offering a wide range of study resources including past papers and solved assignments.

Running head: STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 1
Strategic Management in Jacob’s Creek Company
Student’s name
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STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 2
Contents
Introduction..................................................................................................................................4
Grapes and final product- wines in Australia...............................................................................4
International Opportunities..........................................................................................................6
International Strategies................................................................................................................7
Appropriate ways of entering the market by Jacob’s Creek.......................................................8
Inappropriate Ways of Entering the Market................................................................................8
Recommendations........................................................................................................................9
Conclusion.................................................................................................................................10
References..................................................................................................................................11

STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 3
Strategic Management in Jacob’s Creek Company
Executive Summary
Jacob’s Creek has been a Giant producer of wine products in Australia. The company is
one of the biggest companies in Australia and exhibits expertise in production of quality
products. Jacob’s Creek thrives well on the wings of Australia as a great agriculture producer and
exporter. It has approximately 325,300 people employed in fishing, agriculture and forestry.
Farmers and grazers have approximately 61% of the Australian land (Nankivell, 2009, p. 3).
Jacob’s Creek is a very productive company in production of wines. It gets its supplies for
grapes all over the Australia for the production of wines. Jacob’s creek is among the Australia’s
driving force in the wine brands offering the best and quality styles in the Australian wine
Industries. Jacob’s Creek has been producing wine products for over quite a long period of time
and its production is associated with firms that are situated and runs along Barossa Ranges in
South Australia’s acknowledged Borossa valley. Jacob’s Creek also has a section producing
Wines build after Johann Gramp Who planted a firm along shows of Jacob’s Creek at around
1847 and this led to a sprout of a custom of making wine for over 160 years period

STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 4
Introduction
Jacob’s Creek Company has outshined other producers of wine in the nation
(Wineanorak.com. 2018, p. 66). Johann Gramp was among the people who planted a vineyard
with a vision of making wines. Australia is one of the productive nations in the Agribusiness
sector. Agribusiness sector contributes the greatest GDP in Australia. Farmers are able to
produce enough food to support the population of Australia and export to the other countries. In
my research, I will focus on the Agriculture sector on grape products and the final products of
wine. This is one of the food and agribusiness sectors, which employ the largest number of
people in Australia. Food and agribusiness is one of the most important sectors of the Australian
economy.
Production of wines by Jacob’s Creek Company
Jacob’s Creek has been among the best producers of wines in Australia. The wines
products produced are traded all over the markets of the world. The company has taken many
sections of the World’s market. This has been due to improved and very quality wine products.
Jacob’s Creek Company is a brad in the world’s market. Due to the company offering quality
products and having distributers in different world market, marketing its products has been easy.
Agriculture sector generally contributes 3% of the GDP and employs roughly 4% of the
population (Lockshin, Rasmussen, and Cleary, 2010, p. 19). Agriculture has been one of the keys
sectors, which have contributed to the development of Australia. It has diversified much in this
century. Major agricultural products developed in Australia are wheat, coarse grains, rice,
oilseeds, grain legumes, sugarcane, cotton, fruits, grapes, tobacco and vegetables. Jacob’s Creek
wines are one of the best companies in wines in Australia and all over the world (Creek, 2018,
p.308). It focuses much on the production of 4 types of wines which include Rose, white

STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 5
sparkling and red wines are the best-selling Jacob’s Creek and make a lot of revenue in the
Australian Agribusiness sector.
Farming in Australia is determined by physical environment and the climate. One major
characteristic of Australian farming is how farm income diverges from year to year. The
Australian weather is subject to much fluctuations from year to year (Evans, 2018, p. 776). This
leads to adverse effects to the annual production and greatly on farm income due to the
production of grapes.
Farms range from small to large scale farms. Efficient operations and quality machines
on large-scale farms characterize farming. Jacob’s Creed focuses mainly in the large-scale
production of grapes. However, Australia is expected to focus on environmental stress and
farming degradation (Forino, von Meding, Brewer, and van Niekerk, 2017, p. 107).Production of
grapes in Australia is mostly linked to political stability and has power to affect the national
security for it lies in the Agriculture sector.
Food security also has effects on status of Australia as a chief exporter wines. Australia
has enjoyed safe, cheap and very highly quality and stylistic wines for long period. Technology
trends are so much developed to make the future of grapes products in Australia sustainable in
the future (Carew, and Florkowski, 2009, p.199). Scientists are always on research to improve
this sector. Innovations have been coming up and improving the production of grapes by Jacob’s
creek.
Generally, agribusiness has been profitable in Australia as a nation and also to the
individual farmers. Every sector in farming has been increasing over the years in terms of yield
and income to farmers (Campbell, and Guibert, 2016, p.239). Australia has experienced great
success in the past in farming. However, Jacob’s creek faces competition from other producers

STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 6
like Treasury wine Estates and Occolade. Jacob's Creek propositions in surplus of about 6
million cases of wine yearly and is finished at Pernod Ricard's Barossa Valley production place
in South Australia. Business statistics from retail evidence dealer Aztec show Jacob’s creed is
the biggest company offering wine products followed by Wolf Blass trailed by Brown Brothers
and finally Penfolds.
Jacob’s Creek consequently has strength as a major merchant in residential wine and also tops in
household wines
International Opportunities
The international opportunities for Jacob’s Creek include global demand and population
growth. Increase of income such as China and India with emerging diets increasing has led to
high demand for the high value, quality trusted wines and many different types of products. Asia
with over 1 billion people alone expected to move from poverty as incomes increase, Australia is
expected to take advantage of these opportunities (Anderson, 2009, p.17)
With a population of about 23 million people, Jacob’s Creek farms can manage to
produce wine for exports in conjunction with the competitors. This is a major opportunity to
export their products overseas. Additionally, the location of Southern Hemisphere implies that
Australian seasons complement Northern Hemisphere regions and are able to export grapes
products unavailable in the domestic markets during off-season (Jones, and Webb, 2010, p. 104).
This makes Jacob’s Creek perfectly placed quality producer. Jacob’s Creek has predicted rise in
demand all over the world. Changes in technology and behaviors of people have led to high
consumption of wine products. Population has been increasing over years making these
companies products marketable.

STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 7
Secondly, partnering with foreign and institutional investment; Jacob’s Creek through the
Australian Government’s register made by the Australian Tax Office, indicates that 13.6% of the
countries farmland belongs to foreigners mostly UK-based having 27.5million hectares which
amounts to 53%.It’s followed by United States in the register. Netherland follows with about
3million hectares, Singapore with about 2 million hectares and finally china with 1.5 million
hectares. Philippines, Switzerland, Jersey, Indonesia and Japan are the top foreign buyers. This
makes the most people forming Jacob’s Creek foreigner and not native Citizens of Australia.
Third international opportunity is AgTech. By 2050, the world grape products will raise
due to demand for the satisfaction of the increasing world population. For increased production,
Jacob’s Creek must employ new technologies, capital investments and innovative solutions in
management. Nevertheless, the government supports growth and development in this case, with
around $250 million allocated yearly for research and development of corporations (Campbell,
and Guibert, 2009, p. 239. The government is also sponsoring a competitive program for 8years
for people to come up with competitive technologies and making them accessible to Australian
primary producers by means of delivering new techs through either apps, sensors, GPS tracking
or drones. This will be a big advantage to the producers of grapes for the Jacob’s Creek. Much
produce will be expected and more products will be produced into the worlds Market.
International Strategies
The international strategies for Jacob’s Creek Company include firstly establishing and
improving markets access, which has strong bio-security systems. The systems have too me well
maintained too. This makes traders in grape products and secures the system by making technical
arrangements for exports and imports (Green, Zúñiga, and Pierbattisti, 2013, p. 2). Secondly is
making the international market favorable for wine products produced by Jacob’s creek. This is

STRATEGIC MANAGEMENT IN JACOB’S CREEK COMPANY 8
through making strong brands recognized everywhere in the world. This sector engages
multilateral and bilaterally to effect international policies significances in this goods in favor of
Australia.
Dropping and removal worldwide trade and manufacture disturbances. Australia
encourages other countries to reduce or cancel production barriers to make equitable trading
environment (Young, et al. 2009, p. 199). The forth strategy is by intensification agriculture
through accountable international citizenship. This subdivision works with trade associates to
make a worldwide agricultural division able and transportation. Expertise and skills help in
making better systems and protocols to get mutual clients in global trade and production.
Appropriate ways of entering the world market by Jacob’s Creek
The appropriate modes of entering international market include identifying the market.
Every nation that wants to enter the market must identify the market in which it can trade in.
when a nation identifies the market it can enter and trade effectively with other nations. Markets
are very wide and what a trading nation needs to do is to identify the market and trade. The
second way is to identify opportunities (Pugh, and Fletcher, 2012, p.79). Any nation that sees an
opportunity should utilize such a chance, enter, and trade. Thirdly, a nation needs to comply with
the tariffs, regulations and customs. Industry standards need to be followed or adhere to for it to
trade. Links and industry contacts help governments to enter into the international market. This
connects trade unions with each other creating forces of demand and supply.
Inappropriate Ways of Entering the Market
Inappropriate ways to enter the market include selling sub-standard wine. This creates
unnecessary competition for prices become competitive. This destroys also the reputation of a
company in the market and can make the country unable to trade again when discovered.

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Breaching trade rules and regulations also is a wrong way to enter the market. This is because
when trade tariffs are not paid for like stamp duties make the products cheaper than the others
do. Clients get fake goods leading to losses. Entering the market without the right documents is
also a wrong way to enter the market. Once one is discovered and is discontinued from the
market leads to a bad reputation to a nation or the institution (Lockshin, and Halstead, 2009,
p.96). Importing goods cheaply into a new market is also wrong if one decides to sell the goods
too cheaper than the rest.
Recommendations
Wine production is the one of the most productive sector of the Australian agribusiness.
It is a major contributor into the country’s GDP. Australia being one of the top world’s
economies needs to look keenly to the business for it is a key contributor. The government
should focus on improving reducing the climate stress in order improve grape production in
Australia. Degrading due to agricultural activities should also be a key focus for investment in
order to take care of the future of the business.
The government should invest in modern technology for the improvement of the business
sector. Food security is very important for every nation. Due to the increasing population of the
world Nations, Australia as a major supplier of grape products should employ innovation for a
high quality wine production (Bek, D., McEwan, and Bek. K, 2009, p. 311). The trade unions
should negotiate for the fair trade tariffs. This will make imports and exports of wine easy and
short procedures.
Technology is very important and governments should work on the latest technology for
improvement of production process. This speeds up the production of wine and distribution to
the customers.

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Conclusion
The wine production industry in Australia is a promising business to invest in. It is one of
the best ventures and critical areas in which the country should focus on. The large customer
base for wine in the country is a promising factor for the Jacob’s Creek wine. Grape production
is very essential in the nation of to ensure raw material for wine is availed. Every nation that has
to secure its people must focus on stabilizing such businesses. Australia should budget and plan
well, the issue of grape farming. Australia as a nation is keen in improvement of food security
and agribusinesses. Technology and competitive innovations are being worked on to make sure
the country remains a top supplier of agricultural products such as wine.

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References
Anderson, K. ed., 2009. The world's wine markets: Globalization at work. Edward Elgar
Publishing. IPA Review, 47(3), p.17.
Bek, D., McEwan, C. and Bek, K., 2009. Ethical trading and socioeconomic transformation:
critical reflections on the South African wine industry. Environment and Planning A, 39(2),
pp.301-319.
Campbell, G. and Guibert, N., 2009. Introduction: Old World strategies against New World
competition in a globalising wine industry. British Food Journal, 108(4), pp.233-242.
Carew, R. and Florkowski, W.J., 2009. The importance of Australian corporate brand and grape
varietal wines: Hedonic pricing in the British Columbia wine market. Journal of Wine
Economics, 3(2), pp.194-204.
Evans, S. 2018. Jacob's Creek owner Pernod Ricard mired in red of a different kind.
Forino, G., von Meding, J., Brewer, G. and van Niekerk, D., 2017. Climate Change Adaptation
and Disaster Risk reduction integration: Strategies, Policies, and Plans in three Australian Local
Governments. International Journal of Disaster Risk Reduction, 24, pp.100-108.
Green, R., Zúñiga, M.R. and Pierbattisti, L., 2013. Global market changes and Business behavior
in the wine sector. Cahier du LORIA no. (3) p.02.
Jones, G.V. and Webb, L.B., 2010. Climate change, viticulture, and wine: challenges and
opportunities. Journal of Wine Research, 21(2-3), pp.103-106.
Lockshin, L. and Halstead, L., 2009. A comparison of Australian and Canadian wine buyers
using discrete choice analysis (Doctoral dissertation, Sonoma State University-School of
Business & Economics Wine Business Program).Australian and New. Zealand grapegrower and
winemaker, (463), p.96.

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Lockshin, L., Rasmussen, M. and Cleary, F., 2010. The nature and roles of a wine
brand. Australia and New Zealand Wine Industry Journal, 15(4), pp.17-24.
Nankivell, P., 2009. Australian agribusiness: structure, ownership and control. Journal of
Australian Political Economy, vol, (5), p.3.
Pugh, M. and Fletcher, R., 2012. Green international wine marketing. Australasian Marketing
Journal (AMJ), 10(3), pp.76-85.
Wineanorak.com. 2018. Jacob's Creek: an in depth tasting of one of Australia's top wine
brands.Australian and New Zealand Wine Industry Journal, 17(4), pp.65-67.
Young, S., Hamill, J., Wheeler, C. and Davies, J.R., 2009. International market entry and
development: strategies and management. Journal of Wine Economics 3, no. 2 (2008): 194-204.